Employers choose to outsource for a variety of reasons. Here are some of the most common ones:

l Financial reasons. When considering whether to outsource or not, companies should take a look at capital investments that can be avoided. Without outsourcing, you have more fixed costs and more of an investment, generally speaking. With outsourcing, there are better tax treatments, ongoing expenses, and generally lower head counts.

l Maximize funds. Outsourcing, unlike leasing or employing independent contractors, is the result of a business decision to stop committing internal resources to a given task and to employ an outside firm to do some or all of the work associated with the task that is to be discontinued. In most cases this action frees monies for a company to invest in activities that yield a greater return.

l Quality and customer service improvements. Cycle times are often reduced with outsourcing; however, care must be taken to ensure quality remains.

l Drive/support organizational change. To drive organizational change, one strategy is to outsource and then rebuild. Outsourcing can definitely support rapid change.

l Access to technology and skills. If you don't have the knowledge in-house, you should outsource.

l Accountability and control. When price tags are attached, things get done. This is akin to putting the bargaining value back into the HR relationship.

There are also several reasons not to outsource. Consider these:

l Perceived loss of control over the function or how the function is delivered.

l Core competencies lost or diminished significantly within the company.

l Loss of confidentiality or concern that business information will be available outside of the company.

l Concerns of supplier stability and relationship. If the outsourcing company goes bankrupt, it will be a major cost to return the function to the company. Therefore, look carefully at suppliers.

94,080, Why outsource? Employers choose to outsource for a variety of reasons. Here are some of the most common ones: l Financial reasons. When considering whether to outsource or not, companies should take a look at capital investments that can be avoided. Without outsourcing, you have more fixed costs